As we approach the festive season, high-net-worth clients will soon be unwrapping luxury items that bring festive cheer, but they might also be unwrapping some potential insurance complications.
For brokers, this is the ideal time to remind clients that while the season may be merry and bright, underinsurance is not. A few timely conversations now can help ensure clients enter the New Year fully protected; after all, prevention is better than relying on Father Christmas to come down the chimney twice.
Valuation of new and existing items, reviewing home security measures, and keeping a low profile are all measures that brokers can share with their clients to ensure they stay covered.
It’s beginning to look a lot like… Valuation time
Gifts have always been a Christmas staple, from gold, frankincense and myrrh, to jewellery, designer handbags, and watches, making December a key period for reviewing contents schedules and valuation accuracy.
Many HNW clients do not realise that new high-value items should be declared to their broker or insurer soon after they arrive under the tree. If new items are not notified and values are not updated, clients may unknowingly breach single-article limits or exceed overall contents values.
Beyond new gifts, existing pieces should not be overlooked. The value of precious metals and stones has also continued to rise, meaning inherited family heirlooms such as jewellery, watches, and investment pieces may already exceed their insured value.
Revaluation is often forgotten amid busy schedules, yet remains one of the most effective ways to ensure clients avoid underinsurance on their clients most precious items.
Stop intruders from stepping into your Christmas
The holidays can create ideal conditions for opportunistic theft, with homes full of valuable items, and travel at its peak. Insurers expect appropriate security measures to be in place, and this is particularly important when high-value goods are concerned.
It reportedly only takes one minute for thieves to enter a property, but simple actions such as ensuring all doors and windows are locked, installing burglar alarms and moving car and house keys away from the letterbox can all act as proof that your client has taken ‘reasonable care’.
Another way to protect the home, without taking Home Alone style measures, is installing insurance-approved safes which are secured to the property. On average, most burglaries take between 7-8 minutes, so having secure safes, and distributing valuable pieces across more than one works as an effective deterrent.
Checking it twice: staying social media secure
Sharing our festivities online has become a staple of the Christmas period, however, Santa isn’t the only one making a list and checking it twice. Posting photos of new luxury gifts or sharing a winter holiday in real time can inadvertently demonstrate that a property contains high-value items or is currently unoccupied.
Keeping luxury gifts and travel plans discreet on social media is a simple yet effective way for clients to manage their risk.
Simply having a well-covered Christmas time
Christmas is a time for celebration, but it is also an important checkpoint for reviewing insurance arrangements. A short policy review, valuation update, and security discussion can be the key to protecting a client’s assets.
At Iprism, we understand that even the most organised Christmas shoppers deserve peace of mind. That’s why we increase our clients' contents sum insured by up to 25% to cover those brand-new festive purchases, so long as we’re notified within 60 days of purchase. It’s a simple step that helps ensure every special gift is fully protected.
So, when your client needs to update their cover, brokers can look to the Iprism platform which provides tailored high-net-worth solutions, including worldwide all-risks cover as standard.
With our help, clients can enjoy the festive season knowing their most valuable possessions are safe and secure. Let’s make sure it’s not a Blue Christmas, but the most wonderful time of the year.
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